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Video Title: Project Risk Management
Description: Project Risk Management
Watch more Videos at https://www.tutorialspoint.com/videotutorials/index.htm
Lecture By: Mr. Arnab Chakraborty, Tutorials Point India Private Limited
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In this session, we are discussing project
risk management.

So, at first, let us define what is a
risk?

Risk means cost of failure.

So, if the cost of failure is very high
that means it is risky, the risk factor is

too high and otherwise it is low.

So, in our project management,
this risk management is very important.

We have seen that we are having multiple
different software development paradigm.

We had the spiral model.

That very model was very much dealing with
the risk management.

So, risk management involves all
activities pertaining to identification,

analyzing,
and making provisions for predictable

and non-predictable
risks in the project.

So, risk management is that very management
where these things will be taken care of.

That means, identification, analyzing,
and making provisions for predictable and

non-predictable risks in the project
whatever existing.

So, risk may include the following.

So, what are the risk
factors we usually follow in

our project management, software project
management.

So, experienced staff leaving the project
and new staff is coming in.

So, that is a very risky.

And experienced staff is the main key
resource in that very project.

If they leave the respective organization,
that will be a very risky affairs.

Change in organizational management.

So, top management has got changed.

So, now they are deploying
different rules and

regulations, they
are changing the rules and regulations.

So, obviously, that will cause some risk
in the project execution.

So, requirement change or misinterpreting
the requirement.

So, what about the requirement that was
understood?

Now, it has been
found that some misinterpretation is

taking place or
the requirement is getting changed.

So, what about the software we have
developed so far?

So, those new requirements may not get
implemented in that very platform.

So, that is a risky thing.

So, under estimation of of required time
and resources.

So, we thought that it will get completed
within six months of time.

But now, we are realizing it cannot get
completed less than nine months.

And respective the resources, whatever the
resources, whatever the personnel,

number of personnel, man-evers,
we calculated earlier.

The project execution indicates that we
are going to miss the deadline,

we are going to miss the budget.

Technological changes, environmental
changes and business competition.

So,
these are the different risk factors we

usually find
in our software project management.

So, risk management process.

So, there are following activities
involved in risk management process.

So, what are they?

Identification, make note of all possible
risks which may occur in the project.

So, we should identify all the risk
factors which may come in our project.

So, we should make such a list.

Next topic is our categorize.

So, categorize known
risks into high, medium and low risk

intensity as per
their possible impact on the project.

So, we are assigning some intensity value
on this risks that how much impact this

particular risk can have on the project
execution.

And this intensity values may range from
high, medium and low.

Manage and analyze
the probability of occurrence of risk

at various phases and make plan to avoid
or face risks.

And attempt to minimize their side
effects.

So, also we
are going to calculate the probability

of occurrence of this
risks and the side effects.

Side effect means unwanted effects.

Monitor.

Closely monitor the potential risks and
their early symptoms.

And also monitor Consider the effective
steps taken to mitigate or to avoid them.

So, that means, always we should monitor
this respective project in such a way that

you can guess that
what is going to happen,

what are the risk factors
are going to happen.

So, we should do the proper monitoring and
control, so that we can get some symptoms

that this particular risk is going to
happen.

So, we should remain proactive in the
case.

I then should try to resolve that Project
team reacts to risk when they occur.

Now, we are having this mitigation.

So, plan for additional resources in
anticipation of firefighting.

So, we should have some reserve resource
in our pool.

So, whenever we require them, we can use
them in our firefighting situation.

So, fix on failure.

So, resources are found and applied when
the risk will strike the system.

Crisis management.

Failure does not respond to applied
resources and project is in geo party.

So that means, in case of crisis
management, we have assign say additional

resources, but they are not having any
kind of effect in the project progress.

So, that is known as the crisis management
here.

So, now proactive risk management.

So, reactive means when the failure has
occurred, now what to do?

And proactive means after judging the
symptoms from our experiences,

we should take
the preventive measures earlier prior

when the risks
are actually occurring in the system.

So, formal risk analysis is performed.

So, whatever the history we are having,
so between the risk analysis and from

there we will be having our prior
knowledge.

And formal risk analysis should be
performed.

An organization corrects the root cause of
the risk.

That means, at first we should go for RCA.

What is RCA?

Root cause analysis of different risk
factors.

An organization should do some study on
that.

And total quality
management concepts analysis and

statistical,
there is a software quality assurance.

Examining risk resources,
risk sources rather

and that lie
beyond the bounds of the software.

That is all the risks we should examine
and their respective sources from where

they may appear and lie beyond the bounds
of the software.

And developing the skill to manage change.

So, whenever a change will be there, it
is required to avoid one risk situations.

So, that sort of skill we should have so
that we can deal with the risk factors and

we can get our
project completed within the cost, with

the quality as
was expected and within the budget.

So, this risk management is very important
in our software project management.

Thanks for watching this video.

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